Analysis of Long-term (Investment) Activity Ratios
Activity ratios measure how efficiently a company performs day-to-day tasks, such us the collection of receivables and management of inventory.
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- Statement of Comprehensive Income
- Balance Sheet: Assets
- Common-Size Balance Sheet: Assets
- Common-Size Balance Sheet: Liabilities and Stockholders’ Equity
- Analysis of Profitability Ratios
- Enterprise Value to FCFF (EV/FCFF)
- Debt to Equity since 2005
- Total Asset Turnover since 2005
- Price to Sales (P/S) since 2005
- Analysis of Debt
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Long-term Activity Ratios (Summary)
Occidental Petroleum Corp., long-term (investment) activity ratios
| Dec 31, 2024 | Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | ||
|---|---|---|---|---|---|---|
| Net fixed asset turnover | ||||||
| Net fixed asset turnover (including operating lease, right-of-use asset) | ||||||
| Total asset turnover | ||||||
| Equity turnover |
Based on: 10-K (reporting date: 2024-12-31), 10-K (reporting date: 2023-12-31), 10-K (reporting date: 2022-12-31), 10-K (reporting date: 2021-12-31), 10-K (reporting date: 2020-12-31).
- Net Fixed Asset Turnover
- The net fixed asset turnover ratio exhibited an overall increasing trend from 0.27 in 2020 to a peak of 0.63 in 2022, indicating improved efficiency in generating sales from fixed assets. However, this ratio declined in the following years to 0.48 in 2023 and further to 0.39 in 2024, suggesting a reduction in asset utilization or sales relative to fixed assets over the latter periods.
- Net Fixed Asset Turnover (Including Operating Lease, Right-of-Use Asset)
- This ratio closely mirrored the net fixed asset turnover, starting at 0.27 in 2020 and rising to approximately 0.62 in 2022, before declining to 0.47 in 2023 and 0.38 in 2024. The similarity indicates that operating lease and right-of-use assets have a consistent impact on turnover throughout the period.
- Total Asset Turnover
- Total asset turnover improved significantly from 0.22 in 2020 to 0.50 in 2022, reflecting enhanced effectiveness in utilizing all assets to generate revenue. The ratio then decreased in the subsequent years to 0.38 in 2023 and 0.31 in 2024, marking a downward shift in asset efficiency after the 2022 peak.
- Equity Turnover
- Equity turnover rose from 0.96 in 2020 to a high of 1.28 in 2021, indicating increased sales generated per unit of equity. After this peak, the ratio declined moderately to 1.22 in 2022 followed by a more pronounced decrease to 0.93 in 2023 and further to 0.78 in 2024. This trend suggests diminishing efficiency in generating sales relative to shareholders' equity in more recent years.
Net Fixed Asset Turnover
Occidental Petroleum Corp., net fixed asset turnover calculation, comparison to benchmarks
| Dec 31, 2024 | Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | ||
|---|---|---|---|---|---|---|
| Selected Financial Data (US$ in millions) | ||||||
| Net sales | ||||||
| Property, plant and equipment, net | ||||||
| Long-term Activity Ratio | ||||||
| Net fixed asset turnover1 | ||||||
| Benchmarks | ||||||
| Net Fixed Asset Turnover, Competitors2 | ||||||
| Chevron Corp. | ||||||
| ConocoPhillips | ||||||
| Exxon Mobil Corp. | ||||||
| Net Fixed Asset Turnover, Sector | ||||||
| Oil, Gas & Consumable Fuels | ||||||
| Net Fixed Asset Turnover, Industry | ||||||
| Energy | ||||||
Based on: 10-K (reporting date: 2024-12-31), 10-K (reporting date: 2023-12-31), 10-K (reporting date: 2022-12-31), 10-K (reporting date: 2021-12-31), 10-K (reporting date: 2020-12-31).
1 2024 Calculation
Net fixed asset turnover = Net sales ÷ Property, plant and equipment, net
= ÷ =
2 Click competitor name to see calculations.
- Net Sales
- Net sales exhibited a substantial increase from 17,809 million US dollars in 2020 to a peak of 36,634 million US dollars in 2022. Following this peak, net sales declined to 28,257 million US dollars in 2023 and further to 26,725 million US dollars in 2024, indicating a downward trend after strong growth during the earlier period.
- Property, Plant and Equipment, Net
- The net value of property, plant, and equipment showed a general decrease from 65,889 million US dollars in 2020 to a low point of 58,384 million US dollars in 2022. This was followed by stabilization around 58,529 million US dollars in 2023 and a notable recovery to 69,378 million US dollars in 2024, exceeding the initial value in 2020.
- Net Fixed Asset Turnover
- The net fixed asset turnover ratio improved significantly from 0.27 in 2020 to its highest point of 0.63 in 2022, reflecting greater efficiency in generating sales from net fixed assets. However, this ratio decreased to 0.48 in 2023 and further to 0.39 in 2024, indicating a reduction in asset turnover efficiency after the peak year.
Net Fixed Asset Turnover (including Operating Lease, Right-of-Use Asset)
Occidental Petroleum Corp., net fixed asset turnover (including operating lease, right-of-use asset) calculation, comparison to benchmarks
| Dec 31, 2024 | Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | ||
|---|---|---|---|---|---|---|
| Selected Financial Data (US$ in millions) | ||||||
| Net sales | ||||||
| Property, plant and equipment, net | ||||||
| Operating lease assets | ||||||
| Property, plant and equipment, net (including operating lease, right-of-use asset) | ||||||
| Long-term Activity Ratio | ||||||
| Net fixed asset turnover (including operating lease, right-of-use asset)1 | ||||||
| Benchmarks | ||||||
| Net Fixed Asset Turnover (including Operating Lease, Right-of-Use Asset), Competitors2 | ||||||
| Chevron Corp. | ||||||
| ConocoPhillips | ||||||
| Exxon Mobil Corp. | ||||||
| Net Fixed Asset Turnover (including Operating Lease, Right-of-Use Asset), Sector | ||||||
| Oil, Gas & Consumable Fuels | ||||||
| Net Fixed Asset Turnover (including Operating Lease, Right-of-Use Asset), Industry | ||||||
| Energy | ||||||
Based on: 10-K (reporting date: 2024-12-31), 10-K (reporting date: 2023-12-31), 10-K (reporting date: 2022-12-31), 10-K (reporting date: 2021-12-31), 10-K (reporting date: 2020-12-31).
1 2024 Calculation
Net fixed asset turnover (including operating lease, right-of-use asset) = Net sales ÷ Property, plant and equipment, net (including operating lease, right-of-use asset)
= ÷ =
2 Click competitor name to see calculations.
- Net Sales
- The net sales exhibited a strong upward trend from 2020 to 2022, rising significantly from $17,809 million to $36,634 million. This represents more than a doubling in sales within two years. However, from 2022 onwards, there was a noticeable decline. Sales decreased to $28,257 million in 2023 and further contracted to $26,725 million by 2024. Despite the initial rapid growth, the recent two-year period indicates a downward adjustment in sales figures.
- Property, Plant, and Equipment, Net (Including Operating Lease, Right-of-Use Asset)
- The net value of property, plant, and equipment showed a downward trend from 2020 through 2022, decreasing from $66,951 million to $59,287 million. This slight reduction suggests possible asset disposals, impairments, or lower capital investment during this interval. In 2023, the balance remained relatively stable with a marginal increase to $59,659 million. However, in 2024, there was a substantial increase to $70,315 million, exceeding the initial 2020 level. This spike could indicate significant capital expenditures or asset additions during 2024.
- Net Fixed Asset Turnover (Including Operating Lease, Right-of-Use Asset)
- The net fixed asset turnover ratio, which measures sales generated per dollar of fixed assets, demonstrated a marked improvement from 0.27 in 2020 to a peak of 0.62 in 2022. This indicates enhanced efficiency or higher sales relative to asset base during this period. Subsequently, the ratio declined to 0.47 in 2023 and further to 0.38 in 2024. The downward trend in these years suggests that sales growth did not keep pace with the increase in fixed assets, particularly notable in 2024 given the significant asset base growth coupled with declining net sales.
- Overall Insights
- The company experienced strong sales growth through 2022, accompanied by a rising net fixed asset turnover ratio, reflecting improved asset utilization. From 2023 onwards, net sales decreased while the fixed asset base partially recovered and then rose sharply in 2024. The decline in asset turnover ratio during the last two periods signals deteriorating efficiency in generating sales from fixed assets. This combination of rising asset investment and falling sales and turnover ratio may warrant further investigation into the effectiveness of capital allocation and operational performance in recent years.
Total Asset Turnover
Occidental Petroleum Corp., total asset turnover calculation, comparison to benchmarks
| Dec 31, 2024 | Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | ||
|---|---|---|---|---|---|---|
| Selected Financial Data (US$ in millions) | ||||||
| Net sales | ||||||
| Total assets | ||||||
| Long-term Activity Ratio | ||||||
| Total asset turnover1 | ||||||
| Benchmarks | ||||||
| Total Asset Turnover, Competitors2 | ||||||
| Chevron Corp. | ||||||
| ConocoPhillips | ||||||
| Exxon Mobil Corp. | ||||||
| Total Asset Turnover, Sector | ||||||
| Oil, Gas & Consumable Fuels | ||||||
| Total Asset Turnover, Industry | ||||||
| Energy | ||||||
Based on: 10-K (reporting date: 2024-12-31), 10-K (reporting date: 2023-12-31), 10-K (reporting date: 2022-12-31), 10-K (reporting date: 2021-12-31), 10-K (reporting date: 2020-12-31).
1 2024 Calculation
Total asset turnover = Net sales ÷ Total assets
= ÷ =
2 Click competitor name to see calculations.
- Net Sales
- Net sales demonstrated a significant upward trend from 2020 to 2022, increasing from approximately $17.8 billion to $36.6 billion. This represents more than a doubling over two years. However, in 2023 and 2024, net sales declined to $28.3 billion and $26.7 billion, respectively, indicating a reversal in growth and suggesting potential challenges in revenue generation or market conditions during these years.
- Total Assets
- Total assets initially decreased from $80.1 billion in 2020 to $72.6 billion in 2022. Following this decline, assets rose moderately in 2023 to $74.0 billion and more substantially in 2024 to $85.4 billion, exceeding the 2020 level. The fluctuation suggests periods of asset divestiture or depreciation followed by asset accumulation or revaluation in the latter years.
- Total Asset Turnover
- The total asset turnover ratio increased steadily from 0.22 in 2020 to a peak of 0.50 in 2022, indicating improved efficiency in utilizing assets to generate sales during this period. Subsequently, the ratio declined to 0.38 in 2023 and 0.31 in 2024, implying a reduced efficiency in asset utilization relative to sales, which aligns with the observed decrease in net sales and increase in total assets in these years.
Equity Turnover
Occidental Petroleum Corp., equity turnover calculation, comparison to benchmarks
| Dec 31, 2024 | Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | ||
|---|---|---|---|---|---|---|
| Selected Financial Data (US$ in millions) | ||||||
| Net sales | ||||||
| Stockholders’ equity | ||||||
| Long-term Activity Ratio | ||||||
| Equity turnover1 | ||||||
| Benchmarks | ||||||
| Equity Turnover, Competitors2 | ||||||
| Chevron Corp. | ||||||
| ConocoPhillips | ||||||
| Exxon Mobil Corp. | ||||||
| Equity Turnover, Sector | ||||||
| Oil, Gas & Consumable Fuels | ||||||
| Equity Turnover, Industry | ||||||
| Energy | ||||||
Based on: 10-K (reporting date: 2024-12-31), 10-K (reporting date: 2023-12-31), 10-K (reporting date: 2022-12-31), 10-K (reporting date: 2021-12-31), 10-K (reporting date: 2020-12-31).
1 2024 Calculation
Equity turnover = Net sales ÷ Stockholders’ equity
= ÷ =
2 Click competitor name to see calculations.
- Net Sales
- Net sales exhibited a significant upward trend from 2020 through 2022, increasing from $17,809 million to $36,634 million. This growth was followed by a notable decline in 2023 and 2024, where sales dropped to $28,257 million and then further to $26,725 million. This pattern suggests a peak in sales in 2022, with subsequent years experiencing reduction in revenue generation.
- Stockholders’ Equity
- Stockholders’ equity showed a consistent and substantial increase throughout the entire period. It rose from $18,573 million in 2020 to $34,159 million in 2024, indicating a strengthening equity base and potentially enhanced financial stability or retained earnings growth over these years.
- Equity Turnover
- The equity turnover ratio increased from 0.96 in 2020 to a peak of 1.28 in 2021, followed by a slight decrease to 1.22 in 2022. However, the ratio then declined more sharply to 0.93 in 2023 and further to 0.78 in 2024. This decline in equity turnover in the later years reflects a reduction in sales generated per unit of equity, possibly related to the decrease in net sales observed during the same period, despite the growth in equity.